Govt may not cut oil prices
The reduced international prices would not affect the size of oil bonds to be issued by the government later.
By PTI |
NEW DELHI: The government on Wednesday indicated that the softening of international crude prices will not be passed on to the consumers as of now, and said the lowering of prices would help reduce the amount of subsidy burden.
"When the international oil prices increased, we did not pass the entire burden on to the consumers and the reduced international oil prices have only lessened the subsidy burden of firms like ONGC, oil marketing companies and the government," Finance Minister P Chidambaram told reporters on the sidelines of 'Exposition of Khadi, Village and Coir Industries'.
The reduced subsidy would mean that funds would be available for re-investment by these companies, he said.
Chidambaram said the reduced international prices would not affect the size of oil bonds to be issued by the government later.
He, however, evaded a reply on the timing of the issue of bonds.
The government had earlier said oil bonds worth Rs 14,150 crore would be issued to the oil companies in September.
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